Will Musk’s DOGE Lead To Job Cuts & Saturated Crypto Landscape?

On Thursday, House Speaker Mike Johnson released an official statement claiming, “The taxpayers deserve better… They deserve a more responsive government, a more efficient government.” This marked a landslide decision. 

Trump has roped in billionaires Elon Musk and Vivek Ramaswamy to head the Department of Government Efficiency or DOGE-, which is a winking reference to Musk’s choice of crypto.

The primary role of this newly formed governmental wing is to make the government more efficient by shedding unnecessary financial liabilities. President Trump took to his social media handle to break the news, stating, “It will become, potentially, ‘The Manhattan Project’ of our time.” 

The President’s enthusiasm is infectious, but there is a palpable anxiety among investors due to the recent tariff hike and BTC’s bearish movement.

Role Of DOGE In Financial Landscape 

President Trump has openly stated his support for this newly formed financial institution. However, you must remember that this is not a governmental department. In other words, it is a financial advisory body that will help the government to shed its unnecessary weight.

In an official statement by Musk and Ramaswamy to the Wall Street Journal, the duo stated that they would “serve as outside volunteers, not federal officials or employees”.”The duo would like to cut operational and other government costs to streamline it.

Cutting The Cost 

DOGE is looking to streamline governmental spending with the help of widespread cuts that can bring the overall spending down from 2 trillion US dollars to just 1 trillion by 2026. As a result, this could usher in a new dawn for the financial side of the USA. 

Musk has used his X profile to break the news via a post. In the post, Musk clearly stated that the organization aims to “Reducing the federal deficit from $2T to $1T in FY2026 requires cutting an average of ~$4B/day in projected 2026 spending from now to Sept 30.” 

This is relevant not just for the economy but for the crypto community as well. Pair this with an all-new tariff increase, and you have a complex concoction of uncertainty and anxiety.

Organizational Structure Of DOGE 

Earlier, DOGE was supposedly headed by Ramaswamy and Musk. However, Ramaswamy has left the foray, and the onus falls on Musk. Musk has closely structured the organization in the shape of US Digital Services.

The ambition to reduce the overall governmental spending from 2 Trillion USD to 1 Trillion USD has been narrowed down. Currently, the organization is looking to implement AI and ML to deter or reduce human intervention.

DOGE will supposedly work independently and not as a direct US Governmental organization. Therefore, it raises some questions about data security. Nonetheless, the US President seems to be in favor of the organization.

The Wrap: Upcoming Challenges 

DOGE aims to reduce the overall governmental spending by 1 Trillion USD. This lofty goal is noble but will definitely come with its own challenges. Firstly, this will be an independent organization juggling users’ sensitive financial data. As a result, there seems to be some contention among common folk.

Secondly, Musk is renowned for his anti-bureaucratic nature and approach. As a result, many sceptics believe that the cost-cutting might result in mass-scale unemployment and a market crash. 

All in all, these are all speculations for now.